3. The problem of 'what to produce' relates to:
(a) the choice of technique
(b) distribution of income
(c) market value of the goods and services
(d) the choice of goods and services
Central Problems
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(C) is the option
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Option d is the correct answer
The problem of 'what to produce' relates to the choice of goods and services Central Problems
- 'What to produce' as the phrase suggests it deals with which goods to produce and what will be their quantities.
- The quantities and prices are decided based on market equilibrium of the demand and supply.
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